Was This Really the Bottom For Coinbase?
Coinbase Global, Inc. (NASDAQ: COIN) released quarterly earnings on Aug. 9, and as expected, the cryptocurrency exchange had a terrible, horrible, no good, very bad day. Due to challenging crypto market conditions and the sharp erosion of its retail investor base, the company announced a $1.1 billion loss and a nearly 64% drop in revenue. Moreover, Coinbase warned that next quarter, it was likely that both trading volume and the number of monthly active users would fall again as retail investors continued to abandon crypto.
However, there is reason for optimism in all this. Coinbase has enough liquidity to get through the worst of the so-called "crypto winter" and has been taking serious steps to cut its expense base. And it's not like Coinbase has been sitting around doing nothing as crypto markets cratered. It recently linked up with BlackRock Inc. (NYSE: BLK) on a historic deal to bring crypto to institutional investors. If you are bullish on the long-term future of crypto, you have to be bullish on the long-term future of Coinbase.
After Coinbase reported earnings, Wall Street analysts rushed to adjust their price targets for the embattled cryptocurrency exchange. The new price targets for Coinbase varied wildly. Some gave up on Coinbase entirely, setting a price target of $45, which would be a 50% drop from current levels. Others, though, predicted that Coinbase would outperform the market and set a $200 price target, which would be a doubling from current levels. And still others were noncommittal, suggesting that a price target of around $100 would be most appropriate for the cryptocurrency stock.
Source Fool.com
